THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED
BY SDX TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE
MARKET ABUSE REGULATION (EU) NO. 596/2014 ("MAR"). ON THE
PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION
SERVICE ("RIS"), THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN
THE PUBLIC DOMAIN.
LONDON, July 23, 2018
/CNW/ - SDX Energy Inc. (TSXV, AIM: SDX), the North Africa focused oil and gas company, is
pleased to announce that a gas discovery has been made at its SD-3X
well in the South Disouq Concession, Egypt (SDX 55% working interest and
operator).
The SD-3X well was drilled to a total depth of 7,842 feet and
encountered 32.6 feet of net conventional natural gas pay in the
Abu Madi and Kafr el Sheik horizons, with an average porosity in
the pay sections of 21.7%.
The SD-3X well will now be completed as a producer in the Abu
Madi horizon and then tested after the drilling rig has moved off
location. In order to optimise the potential recovery from
the SD-3X well, the Abu Madi horizon will be completed and produced
initially before re-entering the well to complete and produce the
Kafr el Sheik horizon. The Abu Madi testing is anticipated to
commence between 30 and 45 days after the rig departs, depending on
the availability of testing equipment. Assuming a successful
test in the Abu Madi, it is anticipated that the well will be
connected to the infrastructure located adjacent to the original
SD-1X discovery, where production start-up is anticipated late in
the 4th quarter of 2018.
Paul Welch, President and CEO
of SDX, commented:
"The discovery of gas in both the Abu Madi and Kafr el Sheik
horizons is a very positive outcome for the SD-3X well. As
demonstrated by the Ibn Yunus discovery earlier this year, the Kafr
el Sheik horizon is an excellent quality productive sequence. The
SD-3X discovery has confirmed that this horizon is extensively
present throughout the concession.
We will now analyse the data from all four wells drilled in
the South Disouq campaign, as well as reprocessing and inverting
the existing 3D seismic we have on the concession. Upon
interpretation of this data, and completion of the new 3D survey
later this year, we expect to identify further Abu Madi and Kafr el
Sheik prospectivity for drilling in 2019 and 2020.
With our drilling activities completed, we will now focus on
the completion of the South Disouq processing facility and pipeline
infrastructure with a view to achieving first production by the end
of 2018."
About SDX
SDX is an international oil and gas exploration, production and
development company, headquartered in London, England, UK, with a principal focus on
North Africa. In Egypt, SDX has a working interest in two
producing assets (50% North West Gemsa & 50% Meseda) located
onshore in the Eastern Desert, adjacent to the Gulf of Suez. In
Morocco, SDX has a 75% working
interest in the Sebou concession situated in the Rharb Basin. These
producing assets are characterised by exceptionally low operating
costs making them particularly resilient in a low oil price
environment. SDX's portfolio also includes high impact exploration
opportunities in both Egypt and
Morocco.
For further information, please see the website of the Company
at www.sdxenergy.com or the Company's filed documents at
www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as such term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Forward‐Looking Information
Certain statements contained in this press release may
constitute "forward‐looking information" as such term is used in
applicable Canadian securities laws. Any statements that express or
involve discussions with respect to predictions, expectations,
beliefs, plans, projections, objectives, assumptions or future
events or are not statements of historical fact should be viewed as
forward-looking information. In particular, statements regarding
the timing of completion and testing of SD-3X, the connection of
SD-3X to existing infrastructure, the start-up of production at
South Disouq and the natural gas potential of the South Disouq
license, including the Company's ability to identify further
prospectivity for drilling in 2019 and 2020, all should be regarded
as forward-looking information.
The forward-looking information contained in this document is
based on certain assumptions and although management considers
these assumptions to be reasonable based on information currently
available to them, undue reliance should not be placed on the
forward-looking information because SDX can give no assurances that
they may prove to be correct. This includes, but is not limited to,
assumptions related to, among other things, commodity prices and
interest and foreign exchange rates; planned synergies, capital
efficiencies and cost‐savings; applicable tax laws; future
production rates; the sufficiency of budgeted capital expenditures
in carrying out planned activities; and the availability and cost
of labor and services.
All timing given in this announcement, unless stated otherwise
is indicative and while the Company endeavors to provide accurate
timing to the market, it cautions that due to the nature of its
operations and reliance on third parties this is subject to change
often at little or no notice. If there is a delay or change to any
of the timings indicated in this announcement, the Company shall
update the market without delay.
Forward-looking information is subject to certain risks and
uncertainties (both general and specific) that could cause actual
events or outcomes to differ materially from those anticipated or
implied by such forward‐looking statements. Such risks and other
factors include, but are not limited to political, social and other
risks inherent in daily operations for the Company, risks
associated with the industries in which the Company operates, such
as: operational risks; delays or changes in plans with respect to
growth projects or capital expenditures; costs and expenses;
health, safety and environmental risks; commodity price, interest
rate and exchange rate fluctuations; environmental risks;
competition; ability to access sufficient capital from internal and
external sources; and changes in legislation, including but not
limited to tax laws and environmental regulations. Readers are
cautioned that the foregoing list of risk factors is not exhaustive
and are advised to reference SDX's Management's Discussion &
Analysis for the three months ended March
31, 2018, which can be found on SDX's SEDAR profile at
www.sedar.com, for a description of additional risks and
uncertainties associated with SDX's business, including its
exploration activities.
The forward‐looking information contained in this press release
is as of the date hereof and SDX does not undertake any obligation
to update publicly or to revise any of the included forward‐looking
information, except as required by applicable law. The
forward‐looking information contained herein is expressly qualified
by this cautionary statement.
Oil and Gas Advisory
Certain disclosure in this news release constitute "anticipated
results" for the purposes of National Instrument 51-101 of the
Canadian Securities Administrators because the disclosure in
question may, in the opinion of a reasonable person, indicate the
potential value or quantities of resources in respect of the
Company's resources or a portion of its resources. Without
limitation, the anticipated results disclosed in this news release
include estimates of pay thickness, and hydrocarbon content
attributable to the resources of the Company. Such estimates have
been prepared by management of the Company and have not been
prepared or reviewed by an independent qualified reserves evaluator
or auditor. Anticipated results are subject to certain risks and
uncertainties, including those described above and various
geological, technical, operational, engineering, commercial and
technical risks. In addition, the geotechnical analysis and
engineering to be conducted in respect of such resources is not
complete. Such risks and uncertainties may cause the anticipated
results disclosed herein to be inaccurate. Actual results may vary,
perhaps materially.
Competent Persons Statement
In accordance with the guidelines of the AIM Market of the
London Stock Exchange the technical information contained in the
announcement has been reviewed and approved by Paul Welch, President and Chief Executive
Officer of SDX. Mr. Welch, who has over 30 years of experience, is
the qualified person as defined in the London Stock Exchange's
Guidance Note for Mining and Oil and Gas companies. Mr. Welch holds
a BS and MS in Petroleum Engineering from the Colorado School of Mines in Golden, CO. USA and an MBA in Finance from
SMU in Dallas, TX USA and is a member of the Society
of Petroleum Engineers (SPE).
SOURCE SDX Energy Inc.